Federal regulators are accusing the country’s three largest pharmacy benefit managers of illegally driving up the cost of insulin in the U.S., while making it harder for patients to obtain cheaper versions of the life-saving drug. 

The companies — CVS-owned Caremark Rx, Cigna Group’s Express Scripts and UnitedHealth Group’s Optum Rx — acted in ways that stifled industry competition for insulin drugs, including by using unfair rebating practices, the Federal Trade Commission said Friday.

That artificially raised the list price of insulin, creating what the agency characterized as a “drug rebate system that prioritizes high rebates” from drugmakers, the FTC alleged in announcing lawsuits against the three businesses and their affiliates. 

Pharmacy benefit managers, known as PBMs, manage prescription drug plans for health insurance programs, including Medicare, and serve as intermediaries with pharmacies, employers and drugmakers. Caremark, Express Scripts and Optum together administer roughly 80% of all prescriptions in the U.S., according to the FTC.

“Millions of Americans with diabetes need insulin to survive, yet for many of these vulnerable patients, their insulin drug costs have skyrocketed over the past decade thanks in part to powerful PBMs and their greed,” Rahul Rao, deputy director of the FTC’s Bureau of Competition, said in a statement. “Caremark, ESI, and Optum — as medication gatekeepers — have extracted millions of dollars off the backs of patients who need life-saving medications.”

CVS Caremark and Optum disputed the FTC’s allegations.

“CVS Caremark is proud of the work we have done to make insulin more affordable for all Americans with diabetes. To suggest anything else, as the FTC did today, is simply wrong,” the company said in a statement to CBS News. 

A CVS spokesperson also said the company has a record of protecting patients from rising prescription drug prices and that it has “led the way in driving down the cost of insulin for all patients.” 

CVS members on average pay less than $25 for insulin, according the company, which added that it negotiates deep discounts for its clients.

Optum called the FTC’s claims “baseless.”

“For many years, Optum Rx has aggressively and successfully negotiated with drug manufacturers and taken additional actions to lower prescription insulin costs for our health plan customers and their members, who now pay an average of less than $18 per month for insulin,” the company said in a statement to CBS News. 

Cigna did not immediately respond to CBS News’ request for comment on the lawsuits. 

Americans haven’t had many cost-effective ways to borrow money in recent years. With a potent combination of elevated inflation and higher interest rates designed to combat it, rates on everything from personal loans to credit cards to mortgages surged in response. While home equity borrowing wasn’t immune from this shift, rates on popular products have remained in the single digits, even as the economy looked shaky.

With a home equity loan or home equity line of credit (HELOC), homeowners can borrow from the equity they’ve accumulated in their home to help pay for any number of expenses, large or small. While there are pros and cons to either, right now many may want to consider the HELOC over the loan, even if the HELOC comes with a slightly higher interest rate. Below, we’ll explain why.

Start by seeing what HELOC interest rate you’d be eligible for here now.

3 big HELOC benefits to know as interest rates drop

While a HELOC has an average interest rate of 9.26% now, less than a point above the median 8.46% home equity loan rate, that difference can easily be negated by the following three benefits borrowers should know of now:

Variable rate

A HELOC has a variable interest rate that will change monthly based on market conditions. In the climate of recent years that would be a drawback but now, with a major interest rate cut issued this week and multiple others possible for later this year, it’s a distinct advantage. You can simply borrow from your home equity with a HELOC at today’s rate and comfortably expect to save money in the months and potentially years ahead as rates decline. Just be sure to monitor the rate climate carefully as any adjustments upward will have the same effect.

Start exploring the best HELOCs available to you online.

No closing costs

Sure, a home equity loan has a lower rate than a HELOC right this minute. But if rates decline and you’ve already opened the home equity loan, which comes with a locked rate, you’ll need to refinance it to secure the lower option. And that refinancing will come with a price tag (often 1% to 5% of the total loan value). HELOCs, meanwhile, will inherently adjust on their own for free, which can be particularly helpful in today’s cooling rate climate.

Tax deduction

It may seem counterintuitive to pursue a home equity option with a higher rate than a home equity loan when a home equity loan is also available. But don’t get too hung up on the rate a HELOC comes with now. As mentioned, it’s likely to drop again soon. The interest you pay on a HELOC can also be deducted from your taxes if used for eligible, IRS-approved reasons (like home repairs and improvements). So the economic pain felt from the higher rate may be a moot point once it comes time to file your taxes next spring. 

The bottom line

Not every borrowing option works for everyone. There is no standard, one-size-fits-all option, especially when borrowing from your home equity. But, right now, thanks to its variable rate nature, freedom from closing costs to refinance to a lower rate and the ability to deduct the interest paid on your taxes, a HELOC could be the best option for your unique financial situation. Just be sure to carefully review the rate and terms before signing up as your home serves as collateral in these borrowing circumstances and you could lose it if you’re unable to repay all that you’ve deducted.